Comparing Performance Shipping (NASDAQ:PSHG) and Navigator (NYSE:NVGS)

Performance Shipping (NASDAQ:PSHG) and Navigator (NYSE:NVGS) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Performance Shipping and Navigator’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Performance Shipping	65.32%	23.47%	19.02%
Navigator	14.48%	7.40%	4.23%

Valuation & Earnings

This table compares Performance Shipping and Navigator”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Performance Shipping	$89.61 million	0.24	$69.41 million	$1.50	1.15
Navigator	$550.74 million	2.08	$82.25 million	$1.13	13.85

Navigator has higher revenue and earnings than Performance Shipping. Performance Shipping is trading at a lower price-to-earnings ratio than Navigator, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Performance Shipping and Navigator, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Performance Shipping	0	0	1	0	3.00
Navigator	0	0	5	0	3.00

Performance Shipping presently has a consensus target price of $6.50, suggesting a potential upside of 277.91%. Navigator has a consensus target price of $21.60, suggesting a potential upside of 37.98%. Given Performance Shipping’s higher possible upside, research analysts clearly believe Performance Shipping is more favorable than Navigator.

Volatility & Risk

Performance Shipping has a beta of -0.36, indicating that its stock price is 136% less volatile than the S&P 500. Comparatively, Navigator has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.

Dividends

Performance Shipping pays an annual dividend of $0.10 per share and has a dividend yield of 5.8%. Navigator pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Performance Shipping pays out 6.7% of its earnings in the form of a dividend. Navigator pays out 17.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Performance Shipping is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

19.9% of Performance Shipping shares are held by institutional investors. Comparatively, 19.0% of Navigator shares are held by institutional investors. 0.4% of Performance Shipping shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Performance Shipping beats Navigator on 9 of the 15 factors compared between the two stocks.

About Performance Shipping

Performance Shipping Inc. provides shipping transportation services through its tanker vessels worldwide. As of December 31, 2023, its fleet consisted of seven Aframax tanker vessels with a combined carrying capacity of 735,910 DWT. The company was incorporated in 2010 and is based in Athens, Greece.

About Navigator

Navigator Holdings Ltd. engages in owning and operating a fleet of liquefied gas carriers worldwide. It provides international and regional seaborne transportation services of petrochemical gases, liquefied petroleum gases, and ammonia for energy companies, industrial users, and commodity traders. The company also offers ship shore infrastructure and consultancy services. It operates a fleet of 56 semi- or fully-refrigerated liquefied gas carriers. The company was formerly known as Isle of Man public limited company and changed its name to Navigator Holdings Ltd. in 2006. Navigator Holdings Ltd. was incorporated in 1997 and is based in London, the United Kingdom.